According to an announcement on March 11, US-based crypto exchange Coinbase is set to re-enter India after registering with the country’s Financial Intelligence Unit (FIU). The exchange stated that this development marks a significant milestone in its international expansion strategy.
Coinbase Set To Re-Enter Indian Market
Leading digital asset trading platform Coinbase is poised to make a return to India. The exchange noted that it plans to launch its initial retail services later this year, with additional products to follow.
For the uninitiated, the FIU is India’s anti-money laundering watchdog, overseeing all crypto exchanges operating in the country. Digital asset trading platforms like CoinDCX are already registered with the FIU, while Coinbase rival Binance recently received regulatory approval from the watchdog.
It is worth noting that Coinbase ceased its India operations in 2022 due to unfavorable digital asset regulations in the country. At the time, Coinbase CEO Brian Armstrong stated that the exchange had to exit the market due to “informal pressure” from India’s central bank.
Coinbase’s re-entry into India comes at a time when crypto regulations in the US are undergoing significant changes. Commenting on the development, John O’Loghlen, Regional Managing Director for APAC at Coinbase, said:
We’re committed to building in markets that believe in the potential of crypto and onchain innovation. India represents one of the most exciting market opportunities in the world today, and we’re proud to deepen our investment here in full compliance with local regulations.
The announcement notes that India’s emergence as a global technology powerhouse makes it a natural fit for Coinbase’s international expansion. Over the years, India has cemented its place as a major on-chain development hub, increasing its share of global developers from 3% in 2018 to 12% in 2023.
US-based exchanges like Coinbase, Gemini, and Kraken have found relief following the victory of US President Donald Trump in the November 2024 election. In February, the US Securities and Exchange Commission (SEC) dropped its enforcement case against Coinbase.
Coinbase’s push for global expansion is primarily buoyed by the positive regulatory environment in the US. Recently, the digital asset exchange unveiled plans to add 1,000 new workers in the US.
India Reconsidering Its Stance On Cryptocurrencies
For a long time, India has maintained a hostile stance toward digital assets, imposing significant tax on crypto transactions to discourage investors from engaging with the emerging asset class.
India’s stringent attitude toward cryptocurrencies is striking, as the country ranks first in the world in terms of crypto adoption. Due to India’s policy of discouraging crypto businesses, many crypto entrepreneurs have been forced to relocate to countries like the UAE or Singapore to establish their businesses.
However, seeing Trump’s positive outlook toward digital assets, India is reportedly reconsidering its draconian stance on cryptocurrencies. At press time, BTC trades at $81,633, up 3.1% in the past 24 hours.
